Last Line Of Defense
In the spirit of the not so uncommon brinksmanship often observed when trading equities the last line of defense apparently incurred sufficient buying interest. The chart of the day is none other than my intrepid Zero chart where a Mole reversa signal painted the very low tick of the day (thus far):
And I ask you – does it get much better than this? If you weren’t a Zero subscriber today then I’m probably spending your money on my favorite stripper tonight. Aaaah… simple pleasures…
The second most important chart for us rats today is the weekly panel which I pushed into your faces before the NYSE open today. Thus far the 25-hour appears to be acting as it should – the bulls’ last line of defense. 1565 really was the magic marker and a trip below 1550 would have probably sealed the deal for the grizzlies. For now it’s holding up but the bulls aren’t out of the woodworks just yet.
For one today’s sell off, which has now completely tapered out, looked engineered – another reason why I was looking for a dip buy signal (thank you mighty Zero). And all of a sudden the buyers are going gangbusters – it may be an attempt to engineer a squeeze. However, with all the technical damage incurred it may also be an attempt to buy back at the lows and then see what happens. Whatever it is – be careful and unless you grabbed it at the lows don’t chase this one up.
It’s all about the Euro versus the Dollar though really – Fed versus ECB printing so to say. And the Bernank continues to outprint Draghi by far. Which why it was pretty predictable that this 100-day SMA would hold up. Now if the Euro can climb back above those two weekly SMAs then it should be good to go higher. IF NOT and it falls below then watch out below – first stop would be that NLSL at 1.29547.
Now let’s look at some juicy new setups – please step into my lair:
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